Notes to Accounts of Minolta Finance Ltd.

Mar 31, 2024

19.3.7 Provisions and contingent liabilities

The Company creates a provision when there is present obligation as a result of a past event that probably
requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may,
but probably will not, require an outflow of resources. The Company also discloses present obligations for which
a reliable estimate cannot be made. When there is a possible obligation or a present obligation in respect of which
the likelihood of outflow of resources is remote, no provision or disclosure is made.

19.3.8 Events after reporting date

There have been no events after the reporting date that require adjustment/disclosure in these financial
statements.

19.3.9 Fair value measurement

The Company measures its qualifying financial instruments at fair value on each Balance Sheet date.

Fair value is the price that would be received against sale of an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based on the
presumption that the transaction to sell the asset or transfer the liability takes place in the accessible principal
market or the most advantageous accessible market as applicable.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data is
available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized
within the fair value hierarchy into Level I, Level II and Level III based on the lowest level input that is
significant to the fair value measurement as a whole. For a detailed information on the fair value hierarchy.

For assets and liabilities that are fair valued in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based
on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting
period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy.

F air values

Notes to standalone financial statements for the year ended 31 March 2024 (Contd.) Fair value is the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most
advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of
whether that price is directly observable or estimated using a valuation technique.

In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of
valuation techniques.

This note describes the fair value measurement of both financial and non-financial instruments.

Valuation framework

The Company has an internal fair value assessment team which assesses the fair values for assets qualifying for
fair valuation.

The Company’s valuation framework includes:

• Benchmarking prices against observable market prices or other independent sources;

• Development and validation of fair valuation models using model logic, inputs, outputs and adjustments.

These valuation models are subject to a process of due diligence and validation before they become operational
and are continuously calibrated. These models are subject to approvals by various functions including risk,
treasury and finance functions. Finance function is responsible for establishing procedures, governing valuation
and ensuring fair values are in compliance with accounting standards.

Valuation methodologies adopted Fair values of financial assets, other than those which are subsequently
measured at amortized cost, have been arrived at as under:

• Fair values of equity shares held as inventory held for trading under FVTPL have been determined under
level 2 using observable per share value based on latest available balance sheet of the investee company.

• Fair values of equity shares held as investment under FVTOCI have been determined under level 2 using
observable per share value based on latest available balance sheet of the investee company.

Fair value hierarchy

The Company has determined that the carrying values of cash and cash equivalents, bank balances, trade
payables and other current liabilities are a reasonable approximation of their fair value and hence their carrying
value are deemed to be fair value.

The Company determines fair values of its financial instruments according to the following hierarchy: Level 1:
valuation based on quoted market price: financial instruments with quoted prices for identical instruments in
active markets that the Company can access at the measurement date.

Level 2: valuation based on using observable inputs: using observable per share value based on latest available
balance sheet of the investee company.

Level 3: valuation technique with significant unobservable inputs: financial instruments valued using valuation
techniques where one or more significant inputs are unobservable.

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Mar 31, 2014

Note : 1 CORPORATE INFORMATION

Minolta Finance Limited (the Company) is a Limited Company incorporated in India under the provisions of the Companies Act, 1956. The Company is engaged in Non Banking Finance business.

Notes : 2 Provisioning/Write offs

The Company has complied with the Prudential Norms As per NBFC ''s (Reserve Bank) Direction''s 1998 with regard to Income Recognition, Asset Classification, Accounting Standard, and provision for Bad & Doubtful Debts as applicale to it.

Notes : 3 Segment Reporting

Since the Company is operating in a single line of business of NBFC, no Segment Reporting is reported as defined by Accounting Standard (AS - 17) - "Segment Reporting".

4. Rights, Preferences and Restrictions attached to each class of shares

The Company has only 1 Class of Equity Shares having a par value of Rs 10/- per share. Each holder of Equity Share is entitled to one vote per share. In the event of liquidation of the Company, the holders of Equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in the proportion to the No. of shares held by the shareholder.

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Mar 31, 2013

Note : 1 CORPORATE INFORMATION

Minolta Finance Limited (the Company) is a Limited Company incorporated in India under the provisions of the Companies Act, 1956. The Company is engaged in Non Banking Finance business.

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Mar 31, 2012

1) Compliance of Accounting Standards issued by the Institute of Chartered Accountants of India.

(A) Segment Reporting:

Segmental Reporting as per AS-17 is not applicable.

(B) Related Party Disclosures:

In terms of Accounting Standard 17 of the ICAI related party transactions as well as payment to director is as under:

2) Contingent Liabilities

There is no contingent liability during the year.

3) Presentation and disclosure of financial statements

During the year ended 31st March 2012 the Revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company, for preparation and presentation of its financial statement. The adoption of Revised Schedule VI does not impact recognition and measurement of principle followed for preparation of financial statement. However it has significant impact on presentation and disclosures made in the financial statement. The company has also reclassified the previous year figures in accordance with the requirement applicable in current year.

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Mar 31, 2009

A The Company has complied with prudential norms as per NBFCs (reserve Bank) Directions 1998 with regard to income regognition, asset classification, accounting standards and provision for bad and doubtful debts as applicable to it.

b Adjustment in respect of fall in market price of certain quoted investments has not been done since these are long term investments and the inherent value of such investments does not indicate permanent diminution.